TITLE:
Price as а Communication Signal: Theoretical Dependencies between Price and Perceived Quality
AUTHORS:
Marina Todorova
KEYWORDS:
Price, Perceived Quality, Price Signals, Price-Quality Relationship, Perceived Value
JOURNAL NAME:
Open Journal of Business and Management,
Vol.14 No.1,
January
22,
2026
ABSTRACT: The article examines price as a communication signal and analyzes the theoretical relationships between price and perceived quality in the context of modern consumer behavior. It is based on the understanding that price is not only an instrument of pricing policy, but also a symbolic and psychological code through which consumers interpret product value. Drawing on key theoretical and empirical studies, the article systematizes the main stages in the development of the concept “high price = high quality”, tracing the role of information asymmetry, signaling theory, price thresholds, and models of perceived value. The theoretical synthesis demonstrates that the price-quality relationship is stable but not universal: it has a positive and statistically significant, yet moderate effect and is most pronounced under conditions of uncertainty and limited information. Overall, the findings highlight price as a key communication element in shaping consumers’ perceptions of value.